AFRICA ( Commonwealth Union) _ According to a paper by IMF experts, a successful implementation of the African FTA might result in significant gains for Africa in terms of income and employment, among other factors.
The departmental paper, which was released on Friday (May 5), looked at the chances for African trade integration in light of the global warming issue, the dangers of geopolitical fragmentation, the advancement of technology, and the projected population increase of the continent.
According to the 64-page report, thorough reforms and the implementation of the AfCFTA could boost the median flow of goods between African nations by 53% and with the rest of the world by 15%.
As a result, the real per capita GDP of the average African nation would increase by more than 10%.
Such a performance is consistent with research results that trade changes could assist in reducing extreme poverty by an extra 30–50 million people throughout the continent.This outcome is consistent with research that shows trade reforms might assist 30–50 million more people on the continent escape extreme poverty.
These potential, according to the report’s authors, would necessitate investments in both human and physical capital, a macroeconomic and commercial environment that favors private sector-led growth, and an updated social safety net that protects the most vulnerable.
Despite coming into force in 2019, the Afcfta accord has not yet been fully implemented.
The AfCFTA may one day give rise to “Factory Africa.” Production networks from all continents would eventually be connected via the development of “Factory Africa” and, ultimately, the linking of factories and production chains located in Africa to global value chains.
Africa has long been regarded as a continent with great promise, but consistently, one of its biggest problems has been achieving this potential. The new free trade area might unleash forces for African dynamism and establish the continent as a global competitor if the AfCFTA is successful in motivating these reforms.
